Local authorities fuel tax, fines, infringement fees, and other receipts

10,817

12,645

9,541

(3,104)

Total operating funding (A)

376,288

386,377

386,552

175

Applications of operating funding

Payments to staff and suppliers

245,000

241,197

251,066

9,869

Finance costs

21,965

25,096

23,387

(1,709)

2

Internal charges and overheads applied

-

-

0

0

Other operating funding applications

29,623

30,488

29,587

(901)

Total applications of operating funding (B)

296,588

296,781

304,040

7,259

Surplus (deficit) of operating funding (A - B)

79,700

89,596

82,512

(7,084)

Sources of capital funding

Subsidies and grants for capital expenditure

42,495

39,746

43,375

3,629

Development and financial contributions

5,000

5,000

2,000

(3,000)

3

Increase (decrease) in debt

20,893

25,109

33,618

8,509

Gross proceeds from sales of assets

15,075

15,075

2,050

(13,025)

4

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

83,463

84,930

81,043

(3,887)

Applications of capital funding

Capital expenditure

- to meet additional demand

1,634

3,957

2,595

(1,362)

- to improve the level of service

53,991

57,776

68,583

10,807

- to replace existing assets

84,094

98,610

80,777

(17,833)

Increase (decrease) in reserves

23,444

14,182

11,600

(2,582)

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

163,163

174,526

163,555

(10,970)

Surplus (deficit) of capital funding (C - D)

(79,700)

(89,596)

(82,512)

7,083

Funding balance ((A - B) + (C - D))

-

-

-

(1)

Expenses for this activity grouping also include the following depreciation/amortisation charge

92,109

101,138

102,138

1,000

*Includes only metered water rates where applicable.

Notes:

​1. Our expectation of Wellington International Airport Limited dividends has been increased to 2012/13 actual levels.2. Interest expense forecast in the 2014/15 Draft Annual Plan are lower than was forecast in the 2012–22 Long-term Plan for the same period, along with lower than expected debt levels. 3. The expected Development Contributions income in 2014/15 has been reduced to align better with previous results and incorporate potential legislation changes and policy changes proposed as part of the 2014/15 Draft Annual Plan.​4. Changes in the timings of Wellington Waterfront Limited proceeds off set by the inclusion of expected land sales included in the 2014/15 Annual Plan.

Local authorities fuel tax, fines, infringement fees, and other receipts

-

-

-

-

Total operating funding (A)

17,089

15,856

14,954

(902)

Applications of operating funding

Payments to staff and suppliers

8,579

8,217

7,820

(397)

1

Finance costs

-

-

-

-

Internal charges and overheads applied

8,170

7,574

6,760

(814)

2

Other operating funding applications

267

10

313

303

3

Total applications of operating funding (B)

17,016

15,801

14,893

(908)

Surplus (deficit) of operating funding (A - B)

73

55

61

6

Sources of capital funding

Subsidies and grants for capital expenditure

-

-

-

-

Development and financial contributions

-

-

-

-

Increase (decrease) in debt

-

-

-

-

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

-

-

-

-

Applications of capital funding

Capital expenditure

- to meet additional demand

-

-

-

-

- to improve the level of service

-

-

-

-

- to replace existing assets

110

-

-

-

Increase (decrease) in reserves

(37)

55

61

6

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

73

55

61

6

Surplus (deficit) of capital funding (C - D)

(73)

(55)

(61)

(6)

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

73

55

61

6

*Includes only metered water rates where applicable.

Notes:

1. Differences in inflationary assumptions between the 2012–22 Long-term Plan and 2014/15 Draft Annual Plan and reductions in costs associated with the operations of City Archives.​2. There has been an effort to reduce back office costs, this has resulted in a decrease to internal charges and overheads applied. This reduction has been spread across all activity areas.​3. The second year or the planned two year funding for the Smart Energy Capital iniative included as part of the 2013/14 Annual Plan has been topped up with additional funding in 2014/15 by way of Mayor Wade-Brown's Wellington International Airport Limited directors fees.

Local authorities fuel tax, fines, infringement fees, and other receipts

-

-

-

-

Total operating funding (A)

33,641

36,288

35,152

(1,136)

Applications of operating funding

Payments to staff and suppliers

16,980

17,269

17,624

355

1

Finance costs

-

-

-

-

Internal charges and overheads applied

12,907

14,689

13,664

(1,025)

Other operating funding applications

80

100

100

-

Total applications of operating funding (B)

29,967

32,058

31,388

(670)

Surplus (deficit) of operating funding (A - B)

3,674

4,230

3,764

(466)

Sources of capital funding

Subsidies and grants for capital expenditure

1,080

600

620

20

Development and financial contributions

1,099

1,099

183

(916)

Increase (decrease) in debt

(2,071)

(1,591)

375

1,966

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

108

108

1,178

1,070

Applications of capital funding

Capital expenditure

- to meet additional demand

53

53

34

(19)

- to improve the level of service

55

55

1,144

1,089

2

- to replace existing assets

2,545

2,498

1,806

(692)

2

Increase (decrease) in reserves

1,129

1,732

1,958

226

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

3,782

4,338

4,942

604

Surplus (deficit) of capital funding (C - D)

(3,674)

(4,230)

(3,764)

466

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

3,952

4,456

4,042

(414)

*Includes only metered water rates where applicable.

Notes:

1. Council agreed to provide $350k to the Lyall Bay Surf Club towards the construction of new clubrooms. This funding was agreed for 2013/14 in the 2012–22 Long-term Plan however it has been deferred till 2014/15 due to project delays.2. Council approved additional capital expenditure to implement initiatives identified in the Council's open space and recreation framework "Our Capital Spaces". Additional expenditure has also been included for a new cycle and walkway in Kilbirnie and the repair of coastal areas damaged by the major storms in 2013. Expenditure for the proposed Children's Garden, funded by the Charles Plimmer Bequest, has been reclassified more accurately as upgrade funding.

Local authorities fuel tax, fines, infringement fees, and other receipts

-

7

-

(7)

Total operating funding (A)

12,844

13,854

13,330

(524)

Applications of operating funding

Payments to staff and suppliers

11,112

12,180

11,872

(308)

2

Finance costs

1,002

871

961

90

Internal charges and overheads applied

160

(15)

(37)

(22)

Other operating funding applications

5

-

5

5

Total applications of operating funding (B)

12,279

13,036

12,801

(235)

Surplus (deficit) of operating funding (A - B)

565

818

529

(289)

Sources of capital funding

Subsidies and grants for capital expenditure

-

-

-

-

Development and financial contributions

-

-

-

-

Increase (decrease) in debt

91

-

67

67

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

91

-

67

67

Applications of capital funding

Capital expenditure

- to meet additional demand

-

-

-

-

- to improve the level of service

91

-

67

67

- to replace existing assets

963

7,315

709

(6,606)

3

Increase (decrease) in reserves

(398)

(6,497)

(180)

6,317

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

656

818

596

(222)

Surplus (deficit) of capital funding (C - D)

(565)

(818)

(529)

289

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

565

818

435

(383)

*Includes only metered water rates where applicable.

Notes:

1. The required usage of the landfill levy reserve, which is used to help offset operating costs, was increased after its utilisation was re-assessed.2. Contract negotiations for several waste and recycling services has resulted in lower costs than was anticipated in the 2012–22 Long-term Plan.​3. An extended resource consent process has resulted in a delay to the Southern Landfill Stage 4 extension. The capital programme was re-aligned to project expectations as part of the 2013/14 Annual Plan.

Local authorities fuel tax, fines, infringement fees, and other receipts

-

-

-

-

Total operating funding (A)

38,170

39,758

39,388

(370)

Applications of operating funding

Payments to staff and suppliers

21,373

21,298

21,548

250

2

Finance costs

-

-

-

-

Internal charges and overheads applied

3,616

4,260

3,693

(567)

Other operating funding applications

-

-

-

-

Total applications of operating funding (B)

24,989

25,558

25,241

(317)

Surplus (deficit) of operating funding (A - B)

13,181

14,200

14,147

(53)

Sources of capital funding

Subsidies and grants for capital expenditure

-

-

-

-

Development and financial contributions

1,231

1,231

671

(560)

Increase (decrease) in debt

988

3,947

2,569

(1,378)

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

2,219

5,178

3,240

(1,938)

Applications of capital funding

Capital expenditure

- to meet additional demand

274

399

368

(31)

- to improve the level of service

1,945

4,779

2,872

(1,907)

3

- to replace existing assets

9,962

11,000

9,509

(1,491)

3

Increase (decrease) in reserves

3,219

3,200

4,638

1,438

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

15,400

19,378

17,387

(1,991)

Surplus (deficit) of capital funding (C - D)

(13,181)

(14,200)

(14,147)

53

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

13,744

14,808

14,739

(69)

*Includes only metered water rates where applicable.

Notes:

1. Water rates increased by 4 percent in 2013/14 and increased by 4 percent in 2014/15. In the 2012–22 Long-term Plan the water rates are assumed at 2012/13 levels for the duration of the Plan.2. Reactive maintenance budgets were increased as part of the 2013/14 Annual Plan. This increase has been partially offset by lower Bulk Water costs than were budgeted in the 2012–22 Long-term Plan.​3. The Prince of Wales Reservoir has been deferred to the 2015–25 Long-term Plan, while alternatives are being assessed.

Local authorities fuel tax, fines, infringement fees, and other receipts

-

-

-

-

Total operating funding (A)

36,580

38,004

37,556

(448)

Applications of operating funding

Payments to staff and suppliers

20,715

19,017

21,071

2,054

1

Finance costs

-

-

-

-

Internal charges and overheads applied

7,223

9,378

7,189

(2,189)

Other operating funding applications

-

-

-

-

Total applications of operating funding (B)

27,938

28,395

28,260

(135)

Surplus (deficit) of operating funding (A - B)

8,642

9,609

9,296

(313)

Sources of capital funding

Subsidies and grants for capital expenditure

-

-

-

-

Development and financial contributions

1,007

1,007

549

(458)

Increase (decrease) in debt

(822)

(797)

(367)

430

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

185

210

182

(28)

Applications of capital funding

Capital expenditure

- to meet additional demand

185

210

182

(28)

- to improve the level of service

-

-

-

-

- to replace existing assets

7,226

8,185

7,961

(224)

Increase (decrease) in reserves

1,416

1,424

1,335

(89)

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

8,827

9,819

9,478

(341)

Surplus (deficit) of capital funding (C - D)

(8,642)

(9,609)

(9,296)

313

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

12,538

14,156

13,416

(740)

*Includes only metered water rates where applicable.

Notes:

1. Budgets for network and pump station maintenance were increased as part of the 2013/14 Annual Plan. Treatment plant operational costs are higher than anticipated in the 2012–22 Long-term Plan primarily due to movements in electricity costs.

Local authorities fuel tax, fines, infringement fees, and other receipts

-

-

-

-

Total operating funding (A)

18,138

18,808

18,863

55

Applications of operating funding

Payments to staff and suppliers

7,486

5,223

7,432

2,209

1

Finance costs

-

-

-

-

Internal charges and overheads applied

4,212

6,579

4,434

(2,145)

Other operating funding applications

-

-

-

-

Total applications of operating funding (B)

11,698

11,802

11,866

64

Surplus (deficit) of operating funding (A - B)

6,440

7,006

6,997

(9)

Sources of capital funding

Subsidies and grants for capital expenditure

-

-

-

-

Development and financial contributions

107

107

58

(49)

Increase (decrease) in debt

(7)

8

528

520

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

100

115

586

471

Applications of capital funding

Capital expenditure

- to meet additional demand

100

115

112

(3)

- to improve the level of service

-

-

474

474

2

- to replace existing assets

3,912

4,498

3,887

(611)

2

Increase (decrease) in reserves

2,528

2,508

3,110

602

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

6,540

7,121

7,583

462

Surplus (deficit) of capital funding (C - D)

(6,440)

(7,006)

(6,997)

9

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

6,440

7,006

6,997

(9)

*Includes only metered water rates where applicable.

Notes:

1. Budgets for network and pump station maintenance were increased as part of the 2013/14 Annual Plan. Rates costs have also increased as a result of the 2012/13 rates valuation process.2. A review of Stormwater renewals has resulted in a reclassification of capital expenditure splits between level of service and replacement of existing assets. Lower inflation on capital related costs has been budgeted than in the 2012–22 Long-term Plan.

Local authorities fuel tax, fines, infringement fees, and other receipts

-

-

-

-

Total operating funding (A)

19,130

19,801

19,697

(104)

Applications of operating funding

Payments to staff and suppliers

7,160

5,639

11,469

5,830

1

Finance costs

-

-

-

-

Internal charges and overheads applied

2,874

2,638

2,611

(27)

Other operating funding applications

7,523

9,160

7,553

(1,607)

2

Total applications of operating funding (B)

17,557

17,437

21,633

4,196

Surplus (deficit) of operating funding (A - B)

1,573

2,364

(1,936)

(4,300)

Sources of capital funding

Subsidies and grants for capital expenditure

-

-

-

-

Development and financial contributions

-

-

-

-

Increase (decrease) in debt

-

-

-

-

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

-

-

-

-

Applications of capital funding

Capital expenditure

- to meet additional demand

-

-

-

-

- to improve the level of service

-

-

-

-

- to replace existing assets

765

1,186

1,341

155

Increase (decrease) in reserves

808

1,178

(3,277)

(4,455)

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

1,573

2,364

(1,936)

(4,300)

Surplus (deficit) of capital funding (C - D)

(1,573)

(2,364)

1,936

4,300

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

1,573

2,364

1,618

(746)

*Includes only metered water rates where applicable.

Notes:

1. Funding has been included for the Economic Development Fund established as part of the 2013/14 Annual Plan, a refocusing of resources towards economic development and funding for the Under 20 FIFA World Cup has been brought forward from 2015/16 as the event will be held early than the initial estimated period. Certain costs have also been reviewed and reclassified from Other operating funding application to Payments to staff and suppliers.​2. Reductions in funding for Positively Wellington Tourism were approved in the 2013/14 Annual Plan, part of this reduction has continued and certain costs have also been reviewed and reclassified from Other operating funding application to Payments to staff and suppliers.

Local authorities fuel tax, fines, infringement fees, and other receipts

-

-

-

-

Total operating funding (A)

38,191

38,822

38,260

(562)

Applications of operating funding

Payments to staff and suppliers

17,116

17,418

16,949

(469)

2

Finance costs

-

-

-

-

Internal charges and overheads applied

13,672

13,738

13,425

(313)

Other operating funding applications

400

400

650

250

3

Total applications of operating funding (B)

31,188

31,556

31,024

(532)

Surplus (deficit) of operating funding (A - B)

7,003

7,266

7,236

(30)

Sources of capital funding

Subsidies and grants for capital expenditure

-

-

-

-

Development and financial contributions

466

466

-

(466)

Increase (decrease) in debt

1,469

1,757

482

(1,275)

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

1,935

2,223

482

(1,741)

Applications of capital funding

Capital expenditure

- to meet additional demand

871

908

134

(774)

4

- to improve the level of service

1,064

849

348

(501)

4

- to replace existing assets

2,902

2,851

2,513

(338)

5

Increase (decrease) in reserves

4,101

4,881

4,723

(158)

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

8,938

9,489

7,718

(1,771)

Surplus (deficit) of capital funding (C - D)

(7,003)

(7,266)

(7,236)

30

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

7,091

7,355

7,324

(31)

*Includes only metered water rates where applicable.

Notes:

1. Reduction in revenue forecast from swimming pools. This reflects current trends and a change in the timing of the closure for the Keith Spry Pool upgrade.2. Reductions in swimming pool operating expenditure due to a change in the timing of the closure for the Keith Spry Pool upgrade.3. Increased grant funding for the Basin Reserve Trust for increased ground maintenance costs.4. The new artificial sportsfield planned for the Tawa/Grenada area has been deferred.5. Some sportsfields capital expenditure has been reclassified more accurately as upgrade funding.

Local authorities fuel tax, fines, infringement fees, and other receipts

851

904

659

(245)

Total operating funding (A)

50,410

49,855

51,429

1,574

Applications of operating funding

Payments to staff and suppliers

24,926

26,315

26,145

(170)

Finance costs

-

-

-

-

Internal charges and overheads applied

11,814

10,824

9,951

(873)

Other operating funding applications

3,574

3,162

3,160

(2)

Total applications of operating funding (B)

40,314

40,301

39,256

(1,045)

Surplus (deficit) of operating funding (A - B)

10,096

9,554

12,173

2,619

Sources of capital funding

Subsidies and grants for capital expenditure

30,739

27,705

32,036

4,331

Development and financial contributions

88

88

-

(88)

Increase (decrease) in debt

(88)

(89)

(1)

88

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

30,739

27,704

32,035

4,331

Applications of capital funding

Capital expenditure

- to meet additional demand

-

-

-

-

- to improve the level of service

25,694

27,730

32,034

4,304

2

- to replace existing assets

7,031

7,909

7,371

(538)

3

Increase (decrease) in reserves

8,110

1,619

4,803

3,184

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

40,835

37,258

44,208

6,950

Surplus (deficit) of capital funding (C - D)

(10,096)

(9,554)

(12,173)

(2,619)

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

13,707

13,174

15,730

2,556

*Includes only metered water rates where applicable.

Notes:

1. Increased forecast revenue from housing operations.2. The timing of the Housing Upgrade Project has been revised.​3. The renewal of the Library operating system has been deferred by one year. This has been partly offset by an increase in the cost of renewing Council Housing assets.

Local authorities fuel tax, fines, infringement fees, and other receipts

48

61

52

(9)

Total operating funding (A)

11,875

13,280

12,964

(316)

Applications of operating funding

Payments to staff and suppliers

7,860

7,877

8,275

398

2

Finance costs

-

-

-

-

Internal charges and overheads applied

3,362

4,703

4,148

(555)

Other operating funding applications

29

26

29

3

Total applications of operating funding (B)

11,251

12,606

12,452

(154)

Surplus (deficit) of operating funding (A - B)

624

674

512

(162)

Sources of capital funding

Subsidies and grants for capital expenditure

-

424

-

(424)

Development and financial contributions

15

15

-

(15)

Increase (decrease) in debt

95

(232)

206

438

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

110

207

206

(1)

Applications of capital funding

Capital expenditure

- to meet additional demand

24

25

-

(25)

- to improve the level of service

86

182

206

24

- to replace existing assets

606

728

1,104

376

3

Increase (decrease) in reserves

18

(54)

(592)

(538)

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

734

881

718

(163)

Surplus (deficit) of capital funding (C - D)

(624)

(674)

(512)

162

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

639

680

527

(153)

*Includes only metered water rates where applicable.

Notes:

1. Increased income from liquor licensing due to fee increases and extra fees for the new District Licensing Committees following legislative changes in the Sale and Supply of Alcohol Act 2012 (Act).2. Liquor licensing operating costs have increased due to the establishment of District Licensing Committees following legislative changes in the Sale and Supply of Alcohol Act 2012 (Act).3. Council agreed to provide public toilets in the planned new Lyall Bay Surf Club building. This funding was agreed for 2013/14 in the 2012–22 Long-term Plan however it has been deferred till 2014/15 due to project delays.

Local authorities fuel tax, fines, infringement fees, and other receipts

-

-

-

-

Total operating funding (A)

7,274

6,948

6,665

(283)

Applications of operating funding

Payments to staff and suppliers

2,029

2,005

3,634

1,629

1

Finance costs

-

-

-

-

Internal charges and overheads applied

3,707

3,487

3,088

(399)

Other operating funding applications

1,526

1,455

491

(964)

1

Total applications of operating funding (B)

7,262

6,947

7,213

266

Surplus (deficit) of operating funding (A - B)

12

1

(548)

(549)

Sources of capital funding

Subsidies and grants for capital expenditure

-

-

-

-

Development and financial contributions

-

-

-

-

Increase (decrease) in debt

3,739

638

2,234

1,596

Gross proceeds from sales of assets

15,075

15,075

2,050

(13,025)

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

18,814

15,713

4,284

(11,429)

Applications of capital funding

Capital expenditure

- to meet additional demand

-

-

-

-

- to improve the level of service

3,739

638

2,234

1,596

2

- to replace existing assets

9,114

10,936

2,712

(8,224)

3

Increase (decrease) in reserves

5,973

4,140

(1,210)

(5,350)

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

18,826

15,714

3,736

(11,978)

Surplus (deficit) of capital funding (C - D)

(12)

(1)

548

549

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

12

1

4,305

4,304

*Includes only metered water rates where applicable.

Notes:

1. Wellington Waterfront Operations are no longer funded through a grant. The operating costs are now shown as payments to staff and suppliers.2. Lombard Lane funding included in the 2014/15 Draft Annual Plan, subject to associated private development taking place.​3. Wellington Waterfront Limited capital programme rescheduling as part of the 2013/14 Annual Plan moved capital expenditure from 2014/15 into 2013/14. This has been further reduced with the Kilbirnie Phase two redevelopment deferred as associated Bus Barn development is no longer taking place in the near future and needs to be reassessed.

Local authorities fuel tax, fines, infringement fees, and other receipts

29

58

24

(34)

Total operating funding (A)

20,734

19,739

20,477

738

Applications of operating funding

Payments to staff and suppliers

12,135

11,062

12,990

1,928

2

Finance costs

-

-

-

-

Internal charges and overheads applied

8,407

8,616

7,227

(1,389)

Other operating funding applications

35

37

135

98

Total applications of operating funding (B)

20,577

19,715

20,352

637

Surplus (deficit) of operating funding (A - B)

157

24

125

101

Sources of capital funding

Subsidies and grants for capital expenditure

-

-

-

-

Development and financial contributions

-

-

-

-

Increase (decrease) in debt

13,234

14,454

17,651

3,197

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

13,234

14,454

17,651

3,197

Applications of capital funding

Capital expenditure

- to meet additional demand

-

-

-

-

- to improve the level of service

13,234

14,454

17,651

3,197

3

- to replace existing assets

-

-

-

-

Increase (decrease) in reserves

157

24

125

101

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

13,391

14,478

17,776

3,298

Surplus (deficit) of capital funding (C - D)

(157)

(24)

(125)

(101)

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

157

24

125

101

*Includes only metered water rates where applicable.

Notes:

1. Includes additional revenue associated with the Building consents contract with Christchurch City Council that was not in place at the time of the 2012–22 Long-term Plan.2. There are increased Building compliance and consent costs associated with the Christchurch City Council contract and increased Earthquake strengthening costs in this activity as some was classified as a Corporate cost as part of the 2012–22 Long-term Plan.​3. The programme to earthquake strengthening the Council's prone buildings has changed since the setting of the 2012–22 Long-term Plan with the biggest change due to the strengthening work being carried out on the Town Hall.

Local authorities fuel tax, fines, infringement fees, and other receipts

-

-

-

-

Total operating funding (A)

34,724

39,309

36,602

(2,707)

Applications of operating funding

Payments to staff and suppliers

11,852

13,165

12,529

(636)

1

Finance costs

-

-

-

-

Internal charges and overheads applied

10,999

11,603

10,752

(851)

Other operating funding applications

10

-

10

10

Total applications of operating funding (B)

22,861

24,768

23,291

(1,477)

Surplus (deficit) of operating funding (A - B)

11,863

14,541

13,311

(1,230)

Sources of capital funding

Subsidies and grants for capital expenditure

10,264

10,884

10,590

(294)

Development and financial contributions

987

987

539

(448)

Increase (decrease) in debt

3,000

6,589

9,431

2,842

Gross proceeds from sales of assets

-

-

-

-

Lump sum contributions

-

-

-

-

Total sources of capital funding (C)

14,251

18,460

20,560

2,100

Applications of capital funding

Capital expenditure

- to meet additional demand

127

2,247

1,765

(482)

2

- to improve the level of service

6,406

8,531

10,981

2,450

2

- to replace existing assets

24,786

26,224

25,582

(642)

3

Increase (decrease) in reserves

(5,205)

(4,001)

(4,457)

(456)

Increase (decrease) in investments

-

-

-

-

Total applications of capital funding (D)

26,114

33,001

33,871

870

Surplus (deficit) of capital funding (C - D)

(11,863)

(14,541)

(13,311)

1,230

Funding balance ((A - B) + (C - D))

-

-

-

-

Expenses for this activity grouping also include the following depreciation/amortisation charge

20,461

22,939

22,285

(654)

*Includes only metered water rates where applicable.

Notes:

1. Roading Corridor contract signed as part of the 2013/14 Annual Plan delivered savings for existing service levels, this has resulted in lower costs in the 2014/15 Draft Annual Plan.2. Increased capital funding for cycleways has been included in the 2014/15 Draft Annual Plan, along with increased funding for Rural Roading Improvements and a reduction in the funding required to complete the Johnsoville roading upgrade.​3. Roading Corridor contract signed as part of the 2013/14 Annual Plan delivered savings for existing service levels, this has resulted in lower asset renewal costs in the 2014/15 Draft Annual Plan.

Commercial, industrial and business use per connection status without a water meter

$618,820,000

¢0.386704

$2,393

Commercial, Industrial & Business (with water meter)

Consumption unit charge

Commercial, industrial and business use per connection status with a water meter

n/a

$1.870 / m3

$13,000

Fixed charge / rating unit

Commercial, industrial and business use per connection status with a water meter

n/a

$111.90

$348

TOTAL

$39,354

Stormwater targeted rate

Base (Residential excluding rural)

Capital Value

Base differental use (excluding rural)

$35,721,542,000

¢0.040645

$14,519

Commercial, Industrial & Business (excluding rural)

Capital Value

Commercial, industrial and business use (excluding rural)

$9,551,872,000

¢0.044127

$4,215

TOTAL

$18,734

Base sector targeted rate

Base (Residential)

Capital Value

Residential use

$36,231,294,000

¢0.019177

$6,948

Commercial sector targeted rate

Commercial, Industrial & Business

Capital Value

Commercial, industrial & business use

$10,785,140,000

¢0.046731

$5,040

Downtown targeted rate

Commercial, Industrial & Business

Capital Value

Commercial, industrial & business use located in the downtown area

$7,326,504,000

¢0.192315

$14,090

Tawa driveways targeted rate

Base (Residential)

Fixed charge / rating unit

Shared residential access driveways maintained by Council in the suburb of Tawa (extent of provision of service)

251 properties

$133.33

$34

Marsden Village targeted rate

Commercial, Industrial & Business

Capital Value

Commercial, industrial & business use located in Marsden shopping village area

$11,905,000

¢0.121538

$15

Miramar Business Improvement District targeted rate

Commercial, Industrial & Business

Fixed charge / rating unit

Commerical, industrial and business use located in the Miramar Business Improvement District area

129 properties

$365.00

$47

Capital Value over $1,000,000

Commerical, industrial and business use located in the Miramar Business Improvement District area for all capital value over $1,000,000 CV per rating unit

$90,990,000

¢0.036174

$33

TOTAL

$80

TOTAL RATES REQUIREMENT (excluding GST)

$254,265

Note: When rates for 2014/15 are assessed, GST will be applied to the final rates. The total rates requirement includes rates remissions of $308,000 but excludes rates penalties which are budgeted separately.

Rates are assessed under the Local Government (Rating) Act 2002 (the Act) on all rateable rating units in the Rating Information Database. Where rates are based on value, the capital value of the property as assessed by Quotable Value New Zealand Limited will apply. The latest city-wide revaluation was carried out as at 1 September 2012. This revaluation remains effective for the 2014/15 rating year, except where subsequent maintenance valuations have been required under valuation rules or the Council’s rating policies.

Policy objective:

To provide the Council with adequate income to carry out its mission and objectives.

General rates are set under section 13 of the Act on all rateable rating units in the City of Wellington.

The Council proposes to set a general rate based on the capital value of each rating unit within the city.

The general rate will be set on a differential basis, based on land use. All rating units (or part thereof) will be classified for the purposes of general rates within one of the following rating differentials.

Non-Rateable

Includes any land referred to in Part 1, Schedule 1 of the Act. This land is non-rateable with the exception of targeted rates for sewerage and water where rates are applicable.

50 Percent Non-Rateable

Includes all land referred to in Part 2, Schedule 1 of the Act. This land is 50 percent non-rateable in respect of the rates that would have applied had the property not been classified as non-rateable, with the exception of targeted rates for sewerage and water for which the land is fully rateable.

Base Differential

This includes:

a. Separately rateable land used solely for one or more household units; excluding those properties that provide short stay (28 days or less) commercial accommodation for which a tariff is chargedb. Vacant land zoned residentialc. Rural land (including farmland and lifestyle blocks) under the District Plan that is administered by the Council, but excluding any rating unit that is used for rural industrial purposesd. ​Separately-rateable land occupied by a charitable organisation which is deemed by the Council to be used exclusively or principally for sporting, recreation or community purposes and that does not generate any private pecuniary profit.

This category has a general rate differential rating factor of 1.0.

Commercial, Industrial and Business Differential

This includes:

a. Separately-rateable land used for a commercial or industrial purposeb. Vacant land zoned commercial, industrial or rural industrial under the District Plan administered by the Councilc. Land used for offices, administrative and/or associated functionsd. Land used for commercial accommodation for which a tariff is charged and where the principal purpose is the provision of short stay accommodatione. Business-related premises used principally for private pecuniary benefitf. Utility networks​g. Any property not otherwise categorised within the Base Differential.

This category has a general rate differential rating factor of 2.8.

Annual Uniform General Charge

The Council does not assess a uniform annual general charge.

Differential Rating Category Conditions

Differential rating 2.8:1 Commercial:Base

The differential apportionment for the commercial, industrial and business sector is 2.8 times the General rate per dollar of capital value payable by those properties incorporated under the Base (Residential) differential. No changes are proposed to the differential apportionment in 2014/15.

The separated parts of a rating unit will be differentially rated where a part of the property is non-rateable or the property fits under one or more rating differential and either:

a) The total capital value of the rating unit is above $800,000 or​b) Minority use(s) account for more than 30 percent of the total capital value of the rating unit.

In any other case, the General rate differential is determined by principal use.

In regard to the rates attributable to a rating unit during the transition period between two differential rating categories, a ratepayer may apply for a change in rating category at any time between the lodgement of a building consent application with the Council (on the condition that the principal prior use has ended) and the earlier of either:

a) The time at which the Council gives final approval of the completed works, or​b) The property is deemed (by the Council) to be available for its intended use.

In situations where the change in land use does not require a Council consent, but warrants a change in differential rating category, the onus is on the ratepayer to inform the Council prior to the property being utilised under the new use.

The rating differential classification of all rating units must be set prior to the commencement of a rating year and will remain in place for that entire rating year. Any change in circumstances that results in a change of differential classification during a rating year will apply from 1 July of the following rating year.

​Any property eligible for mandatory 50 percent non-rateability under Part 2, Schedule 1, of the Act, will be first classified under the appropriate General rate differential classifications and the non-rateability applied to that rate.

Sewerage Rate

Targeted sewerage rates are to be apportioned 60 percent:40 percent of rates between properties incorporated under the Base differential and the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy. This rate pays for the cost of the provision of the sewerage treatment facilities for the city.

For the purposes of these rates the sewerage collection and disposal service is treated as being provided if the rating unit is connected to a public sewerage drain (either directly or indirectly), irrespective of whether the property is considered fully rateable or is mandatory non-rateable or 50 percent non-rateable under Schedule 1 of the Act.

The targeted Sewerage rate is calculated as follows:

For rating units incorporated in the Commercial, Industrial and Business differential:

A rate per dollar of capital value on all rating units connected to a public sewerage drain, to collect 40 percent of the required rates funding, after having deducted the total dollar amount budgeted to be collected through Trade Waste Charges (excluding consent fees).

For rating units incorporated in the Base differential:

A fixed amount of $106.60 (+GST) and a rate per dollar of capital value on all rating units connected to a public sewerage drain, to collect 60 percent of the required rate funding.

Water Rate

A targeted rate for water is to be apportioned with the aim of achieving a 60 percent:40 percent split between properties incorporated under the Base differential and the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy.

This rate pays for water collection and treatment facilities, the water distribution network and water conservation for the city.

This rate is set on all rating units serviced by a water connection.

For the purposed of these rates, the water service is treated as being provided if the rating unit is connected to the public water supply (either directly or indirectly), irrespective of whether the property is considered fully rateable or is mandatorily non-rateable or 50 percent non-rateable under Schedule 1 or 2 of the Act.

The targeted Water rate is calculated as follows:

For rating units incorporated in the Commercial, Industrial and Business differential, either:

a) A consumption unit rate of $1.870 (+GST) per cubic metre of water used by all rating units connected to the public water supply with a water meter installed, plus a uniform targeted rate of $111.90 (+GST) per annum per connection status.

Or

b) A rate per dollar of capital value on all rating units connected to the public water supply, without a water meter installed.

For rating units rated incorporated in the Base differential, either:

a) A consumption unit rate of $1.870 (+GST) per cubic metre of water used by all rating units connected to the public water supply with a water meter installed, plus a uniform targeted rate of $111.90 (+GST) per annum per connection status.

Or

b) A uniform targeted rate of $137.70 (+GST) per rating unit and a rate per dollar of capital value on all rating units connected to the public water supply without a water meter installed, to collect the required Base differential contribution.

Stormwater Network Rate

A targeted stormwater rate is to be apportioned 77.5 percent to the non-rural rating units incorporated under the Base differential and 22.5 percent to the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy. This rate pays for the cost of the provision of the stormwater collection/disposal network for the city.

Properties classified as rural under the Council’s District Plan are excluded from the liability of this rate.

The targeted Stormwater network rate is calculated as follows:

For non-rural rating units incorporated in the Commercial, Industrial and Business differential:

A rate per dollar of capital value to collect 22.5 percent of the required rates funding.

For non-rural rating units incorporated in the Base differential:

A rate per dollar of capital value to collect 77.5 percent of the required rates funding.

Commercial, Industrial and Business Sector Targeted Rate

This rate pays for activities where the Council’s Revenue and Financing Policy identifies that the benefit can be attributed to the commercial, industrial and business sector and where the activity is not incorporated in other service related targeted rates. This incorporates the following:

100 percent of the cost of the events attraction and support activity.

This rate is assessed on all properties incorporated in the commercial, industrial and business sector and is calculated on a rate per dollar of rateable capital value.

Base Sector Targeted Rate

This rate pays for activities where the Council’s Revenue and Financing Policy identifies that the benefit can be attributed to properties incorporated under the Base differential rating category (incorporating residential ratepayers). This incorporates the following activities:

100 percent of the facilitation of community environmental initiatives, cultural grants, facilitation of recreation partnerships and community advocacy activities.

​98 percent of the provision of community centres and halls activities.

This rate is assessed on all properties incorporated under the Base differential rating category and is calculated on a rate per dollar of rateable capital value.

Downtown Targeted Rate

This rate pays for tourism promotion and retail support (free weekend parking). It also pays for 70 percent of the visitor attractions activity and 25 percent of galleries and museums activity.

This rate is assessed on all commercial, industrial and business properties in the downtown area and is calculated on a rate per dollar of rateable capital value. For the purpose of this rate, the downtown area refers to the area as described by the Downtown Area map as follows:

Tawa Driveways Targeted Rate

This rate pays for the maintenance of a specified group of residential access driveways in the suburb of Tawa, overseen by the Council. This rate is assessed on a specific group of rating units in the former Tawa Borough at a fixed amount of $133.33 (+GST) per annum.

Marsden Village Targeted Rate

This rate is collected by the Council on behalf of the Marsden Village Association on all commercial, industrial and business properties in the Marsden shopping village and is calculated on a rate per dollar of capital value.

Miramar Business Improvement District Targeted Rate

This rate is collected by the Council on behalf of Enterprise Miramar Peninsula Incorporated on all commercial, industrial and business properties in the Miramar Business District and is calculated partially on a uniform targeted rate of $365 (+GST) per rating unit and a fixed rate per dollar of capital value where capital value exceeds $1 million.

The following table shows the indicative residential property rates inclusive of GST for properties without a water meter for 2014/15:

Capital Values $

2014/15 Proposed Rates $

Increase over 2013/14 ​%

200,000

1,082

2.97%

300,000

1,483

2.93%

400,000

1,883

2.91%

500,000

2,284

2.90%

600,000

2,684

2.88%

700,000

3,085

2.88%

800,000

3,485

2.87%

900,000

3,886

2.87%

The following table shows the indicative downtown commercial property rates inclusive of GST (for properties with a water meter) for 2014/15. This excludes water by consumption which is charged based on actual usage:

1. Lower levels of inflation compared to the assumptions used in the 2012–22 Long-term Plan.2. Reclassification of rates between general rates and water rates3. Development Contributions forecast to be lower than forecast in the 2012–22 Long-term Plan due to proposed legislative changes and open for business initiative reducing the obligation of five star green star developments self assessing buildings.4. Changes in the timings for the Crown funding for the housing upgrade programme results in higher 2014/15 revenue.5. Airport dividend forecast at 2012/13 levels, this is higher than the assumption used in the 2012–22 Long-term Plan.6. Interest expense forecast in the 2014/15 Draft Annual Plan is lower than was forecast in the 2012–22 Long-term Plan for the same period, along with lower than expected debt levels.7. Details of specific changes to operational costs can be found in the Funding Impact Statements. This will outline at an activity level the key changes.8. Explanation of Net Operating Surplus:

1. Assumptions on the funds held on deposit changed between the 2012–22 Long-term Plan and the 2014/15 Draft Annual Plan.2. Higher level of prepayments in the 2014/15 Draft Annual Plan compared to the same period in the 2012–22 Long-term Plan. Key driver is increased insurance prepayment, due to higher premiums and a different payment period.3. Inclusion of Capital expenditure carryforward assumption in the 2014/15 Draft Annual Plan not included in the 2012–22 Long-term Plan for the same period. The Council is committed to reducing the amount of capital expenditure that is not completed in the year it is planned.​4. Reduction due to changes in assumptions used for asset revaluations and reductions in the capital expenditure programme in 2013/14 and 2014/15.

1. Wellington City Council collects rates on behalf of GWRC. The 2012–22 Long-term Plan showed cash flows net of this transaction.2. Timings changes in proceeds from Wellington Waterfront Limited and forecasting land sales expectations.3. Changes in the timings of the capital expenditure programme.4. Changes in reporting requirements.​5. Variations in actual opening balance between the 2012–22 Long-term Plan and the opening balance for the 2014/15 Draft Annual Plan.

For the benefit of art (Fine Arts Wellington), education (technical and other night schools) and athletics (rowing)

E A McMillan Estate

6

-

-

6

For the benefit of the public library

E Pengelly Bequest

12

1

-

13

For the purchase of children's books

F L Irvine Smith Memorial

6

-

-

6

For the purchase of books for the Khandallah Library

Greek NZ Memorial Association

5

-

-

5

For the maintenance and upgrade of the memorial

Kidsarus 2 Donation

3

-

-

3

For the purchase of children's books

Kirkaldie and Stains Donation

17

-

-

17

For the beautification of the BNZ site

QEII Memorial Book Fund

21

1

-

22

For the purchase of books on the Commonwealth

Schola Cantorum Trust

6

-

-

6

For the purchase of musical scores

Stanley Banks Bequest

19

-

(15)

4

To be available for bursaries for children of World War II servicemen

Terawhiti Grant

10

-

-

10

To be used on library book purchases

Wellington Beautifying Society Bequest

14

-

-

14

Used towards "the Greening of Taranaki Street" project

Total trusts and bequests

408

16

(15)

409

Total restricted funds

10,715

3,766

(3,765)

10,716

In addition to the above, the Council is proposing to establish a Forest Carbon Reserve Fund on the basis that it will reinvest a share of revenue from the sale of forestry emission units under the New Zealand Emissions Trading Scheme or Permanent Forest Sink Initiative to protect or enhance the Council’s forest carbon stocks. Other revenues generated from the sale of emission units or from costs recovered by way of fees and charges in regard to the New Zealand Emissions Trading Scheme will be treated as other revenues received by the Council. We are not anticipating any revenue for this fund in the 2014/15 year.